Abu Dhabi / Dubai real estate market: The two horsemen
Source: REIDIN , Author: Posted by BI-ME staff
Posted: Thu March 16, 2017 1:25 pm

UAE. An examination of the Abu Dhabi and Dubai real estate market reveals that since 2012, Dubai apartments have experienced superior growth rates (2x) to those of Abu Dhabi. Remarkably in the villa segment, capital gains in both cities have mirrored each other indicating that in the horizontal space there is an equal value being perceived by investors.

In the rental space both cities have followed the same trajectory as prices. Dubai apartment rental rates have appreciated more than 35% since that time, while apartment rates in Abu Dhabi have slipped back to the 2012 levels. In the villa space, rental rates of both cities have moved in tandem over the past 5 years.

In 2016, Abu Dhabi had a completion rate of 75% whereas Dubai stood at 48%. The realization rates of supply in both cities have been systematically lower, indicating not only the flaws in the estimates made by analyst, but also a greater sensitivity on the part of developers to adjust to the market conditions.

Investors have already started to perceive similar economic value in the villa space between the two cities. As the capital state ramps up supply in the mid income space, it is likely that the price cycles of Abu Dhabi and Dubai will start to converge, reflecting the symbiotic economic performances of the two Emirates.

Although relative locational and regulatory advantages may be something that investors focus on during price cycles, the overall market dynamics indicate that prices should start moving in tandem between the two cities in the coming years.

To read the full report click here.

About REIDIN
REIDIN is the leading real estate information company focusing on emerging markets. REIDIN offers intelligent and user-friendly online information solutions helping professionals access relevant data and information in a timely and cost effective basis.

About Unitas
Unitas believes in in-depth planning and discipline as a mechanism to identify and exploit market discrepancy and capitalize on diversified revenue streams. The purpose of Unitas is to manage, direct, and create wealth for our clients.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: September 18, 2017
SAUDI ARABIA. A new report by executive search firm Metin Mitchell & Co highlights the confidence that Saudi women feel about their working futures and what needs to be done to increase the number of women in the workplace.
date:Posted: September 15, 2017
UAE. First of its kind study in the MENA region reveals why we are emotionally drawn to certain destinations and environments; Visible everyday human activity, greenery, artistic features and bright colours found to be the most powerful drivers of emotional engagement.
date:Posted: September 14, 2017
UAE. Family offices, importers and exporters, and the TMT industry will be impacted by VAT in various ways, so the need to ensure they are prepared for when VAT is introduced from 1 January 2018 is clear.
SAUDI ARABIA. The Future Investment Initiative (FII) will host global leaders, investors and innovators; FII will be a game-changing platform exploring the trends, opportunities and challenges that will shape the world economy and investment environment over the coming decades.
dhgate